Finance
A Michigan borrower's loan is 'underwater' when:
AThe interest rate resets higher than the original rate
BThe outstanding mortgage balance exceeds the property's current market value✓ Correct
CThe borrower is more than 90 days delinquent on payments
DThe property is located in a flood zone
Explanation
A property is 'underwater' (also called 'negative equity') when the homeowner owes more on the mortgage than the home is currently worth. This was common in Michigan during the 2008-2012 housing crisis.
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